Wells Fargo will be facing a lawsuit for alleged discriminatory practices.
As AfroTech previously reported, Bloomberg revealed various Black applicants hoping to refinance their homes were denied at an alarming rate in comparison to white homebuyers. Already, U.S. Senate Banking Committee Chair Sherrod Brown, an Ohio Democrat, and other Democratic senators are keeping their eyes on Wells Fargo following Bloomberg’s recent report. As a collective, they are calling for regulators to look into Well Fargo’s refinancing practices during the pandemic.
“Black applicants are further subjected to delays, feigned mistakes, and other obstacles, leading many Black Americans to withdraw their requests for refinancing, and leading others to wait indefinitely while Wells Fargo refuses to act upon their applications,” the complaint read, according to Bloomberg.
Wells Fargo issued a statement exclusively to AfroTech following the Bloomberg News report.
“We remain focused on pursuing our $185 billion in diverse lending commitments, providing products and programs that can make homeownership more accessible, and being there to provide thoughtful service, support, and care to customers in minority communities across the country,” Tom Goyda Senior Vice President, Consumer Lending Communications at Wells Fargo wrote.
Wells Fargo Under Fire Again
It appears the banking giant is under fire yet again as a lawsuit was filed Friday, March 18, 2022, in San Francisco, CA as a proposed class action, Bloomberg News reports.
According to the lawsuit, Wells Fargo allegedly rejected lower interests rates through refinancing for Black homeowners and forced them to funnel more dollars toward loans.
“Federal data shows that over the last several years thousands of Black homeowners have been unable to maintain the dream of home ownership because of Wells Fargo’s ongoing and discriminatory modern day ‘redlining’ practices,” according to the complaint, Bloomberg reports.
Wells Fargo has not yet commented on the recent lawsuit.